Hong Kong's largest life insurer, American International Assurance (AIA), plans to further expand in Southeast Asia in the next two years. AIA chief Edmund Tse Sze-wing said asset prices had fallen significantly across the region, providing many takeover targets. 'Many companies in Asia have very solid foundations,' he said, adding the company had recently acquired a Thai bank. AIA has just been assigned the highest credit rating - AAA - by Standard and Poor's. Mr Tse said AIA's parent, American International Group (AIG), planned to launch a US$2 billion Asian infrastructure fund that would make direct investment in infrastructure projects in the mainland, India and elsewhere. He said AIG would also set up a $1 billion fixed-income fund that would invest in regional bonds. AIG had considered purchasing part of the collapsed Peregrine group's operations but decided not to proceed, Mr Tse said.